Benzinga | Jan 29, 2021 10:09AM EST

Earnings Preview for Cabot

Cabot (NYSE:CBT) unveils its next round of earnings this Monday, February 01. Here is Benzinga's everything-that-matters guide for the earnings announcement.

Net Income, Earnings, And Earnings Per Share

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Cabot earnings will be near $0.87 per share on sales of $697.83 million, according to analysts. In the same quarter last year, Cabot announced EPS of $0.69 on revenue of $727.00 million.

Why Analyst Estimates And Earnings Surprises Are Important

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

If the company were to report earnings in line when it publishes results Monday, earnings would be up 26.09%. Sales would have fallen 4.01% from the same quarter last year. In comparison to analyst estimates in the past, here is how the company's reported EPS stacks up:

Quarter Q4 2020 Q3 2020 Q2 2020 Q1 2020EPS Estimate 0.55 -0.01 0.71 0.74EPS Actual 0.68 -0.07 0.77 0.69Revenue Estimate 675.00 M 560.03 M 766.94 M 763.13 MRevenue Actual 659.00 M 518.00 M 710.00 M 727.00 M

Stock Performance

Over the last 52-week period, shares are up 9.76%. Given that these returns are generally positive, long-term shareholders can be content going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Cabot is scheduled to hold the call at 08:00:00 ET and can be accessed here.